*** tyc plans to avert takeover

Tethyan plans to avert takeover
Source: LONDON REU
Date: 2005-Jun-15 10:35 PM

"Australia's Tethyan Copper Company Limited aims to avert a takeover and develop its world class copper deposit in Pakistan.

The Reko Diq deposit in the province of Baluchistan, southwestern Pakistan, will be developed in two stages, initially with a 45,000 tonnes per year capacity, eventually rising to 200,000 tonnes of copper and 400,000 ounces of gold a year.

A recent bid for Tethyan by Hong Kong-based and London listed merchant banking firm Crosby Capital Partners Inc was opportunistic and significantly undervalued the company, said John Schloderer, Tethyan's general manager.

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"Basically it's business as usual and full steam ahead on the feasibility study for H4 (stage one)," he said during a presentation at a mining conference in London held by Numis Securities and RFC Corporate Finance.

"We're not interested in an auction, we're interested in putting it into production ourselves,' he added.

Three weeks ago Crosby made a cash offer of 64 Australian cents per share, Schloderer said.

Tethyan would wait for the bidder statement before responding.

The first phase of Reko Diq, known as H4, would involve a 45,000 tonnes per year SX-EW operation producing copper cathode for around 15 years.

The final feasibility study for the project was due to be completed by December 2005, with construction work likely to start in 2006 and take 18 months.

Start up capital costs were around $US150 million ($A196.7 million), Schloderer said.

The second phase, involving development of the Western Porphyries deposit, would cost $US1.0 billion ($A1.31 billion).

The gross value of the entire project was put at $US22 billion ($A28.8 billion), based on content of 13.2 billion lb of copper and 9.0 million ounces of gold.

Resource drilling work is currently in progress on Phase II.

Tethyan holds a 75 per cent interest in Reko Diq, with the government of Baluchistan holding the remainder.

BHP Billiton has buy-back rights on the second phase."